<VV> Rant against Dealers was Confusion

[BBRT]

Work accomplished by a Dealer mechanic under warranty or recall, is paid at 
a different labor rate, than regular customer work at that location.  By 
labor rate, I am referring to the flat manual rate, a reference that garages 
and dealers use to calculate labor and subsequent labor charges to the 
customer.  The "overhead" rate, charged for warranty/recall work, allows the 
mechanic a shorter amount of time to do the work, often less time than it 
takes the mechanic to do the work.  Therefore, mechanics generally "have to" 
do the 'warranty' work, but don't want to.  If you figure starting a timer 
when the employee finishes a job and turns in the keys and paperwork, his 
time starts on the new task, which includes getting the car - sometimes not 
running - into the bay and diagnosing, getting parts - at the window or 
ordering, and then doing the work and finishing etc... The mechanic is paid 
for the allowed time.  Folks forget generally a garage will not charge more 
than the labor rate manual indicates for a job that takes longer. This is 
especially true for warranty/recall work done at ovrhd rates. And yes, the 
dealership does try and load those charges with diagnostics, whatever 
charges they can relate to the job, sometimes, & shop materials charges so 
THEY can break even or make money, but the mechanic suffers.

The pay system is designed to make it rewarding to take advantage of a 
customer.   The Mfg. wants to minimize warranty claims/costs while the 
Dealers want to maximize all returns; regular labor for a customer, labor 
paid for warranty/recalls; and parts and supplies.  Modern business 
practices where dealerships are owned, not by a dedicated Dodge or Chev man, 
but by a multi-brand corporation who could care less other than the bottom 
line leads to detached ownership and zero leadership or responsibility. 
Modern dealerships often have more mechanics than they have work. This means 
mechanics do not get 40 hr and of course, without a regular 40 work week, no 
benefits are required to be paid...... Some dealerships may have a few - as 
few as one or two of 5-10 mechanics who are full time... There are 
exceptions in various parts of the country where a dealership may have the 
number of mechanics needed, and they are full time.

It is tough for mechanics/auto technicians to do well at Dealerships, 
(generality) unless they throw parts at problems in order to quickly turn 
jobs out.  There are exceptions; perhaps some on these lists..

Needless to say, the idea of recalls and warranties gets my "dander up"...

Chuck S
BBRT


----- Original Message ----- 
From: "Ken Wildman" <k-wildman at onu.edu>
To: <virtualvairs at corvair.org>
Sent: Thursday, August 31, 2006 7:04 PM
Subject: <VV> Confusion


> Folks seem to be confusing some terms.
>
> Warranty/Guarantee is a promise limited to certain kinds of defects, to 
> repair or replace without cost for the specific item(s) listed in the 
> warranty.
>
> Recall is a federally mandated action by the manufacturer to correct a 
> manufacturing/materials defect in an automobile.  The complete recall 
> action must be done without cost to the customer.  Any other work you 
> agree to is done on a regular repair basis and you pay.
>
> Ken